According to a notification issued by the Ministry of Finance, HDFC Bank, ICICI Bank, Axis Bank Ltd, City Union Bank Ltd, DCB Bank Ltd, Federal Bank Ltd, IDFC FIRST Bank, IndusInd Bank, Jammu and Kashmir Bank, Karnataka Bank Ltd, Karur Vysya Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, Yes Bank Ltd, Dhanlaxmi Bank, Bandhan Bank, CSB Bank and Tamilnad Mercantile Bank have been authorized to make deposits under the Capital Gains Account Scheme | Photo credit: AJAY VERMA
According to a notification issued by the Ministry of Finance, HDFC Bank, ICICI Bank, Axis Bank Ltd, City Union Bank Ltd, DCB Bank Ltd, Federal Bank Ltd, IDFC FIRST Bank, IndusInd Bank, Jammu and Kashmir Bank, Karnataka Bank Ltd, Karur Vysya Bank, Kotak Mahindra Bank, RBL Bank, South Indian Bank, Yes Bank Ltd, Dhanlaxmi Bank, Bandhan Bank, CSB Bank and Tamilnad Mercantile Bank have been authorized to make deposits under the Capital Gains Account Scheme. The restriction on national branches will also continue to apply here. A rural branch is defined as a branch located and functioning in a center where, according to the 2011 census, fewer than 10,000 inhabitants live.
Another notification added section 54GA under the Capital Gains Account Scheme. This means that capital gains arising from the transfer of assets on the relocation of industrial enterprises from the urban area to any SEZ can be deposited.
Section 54 provides exemption from paying LTCG (Long Term Capital Gains) tax on the sale of a plot or an old house if someone acquires a new house or certain assets one year before or within two years after the sale of your old house. If someone plans to build a new house, he/she must do so within three years of selling the old house. Now you can park the money during the intermediate period (the time between selling and reinvesting) via a special deposit system.
There will be two types of deposit accounts, namely Deposit Account-A; and Deposit Account-B. The deposit in account A will be in the form of a savings deposit and withdrawals from this account may be made by the depositor from time to time. Such an account states the interest rate that applies to Savings Accounts.
The deposit in account B will be in the form of a term deposit with an option for the depositor to retain the deposit as a cumulative or non-cumulative deposit. Withdrawals from this account can only be made after the period for which the deposit has been made and accepted into this account has expired. Such deposits may be made at any time in one lump sum or in installments on or before the due date of the return of income under sub-section (1) of section 139 of the Income Tax Act, as applicable in the case of the depositor.
What is a Capital Gains Term Deposit Account?
The Capital Gain Term Deposit Account can be opened with a minimum deposit of ₹1,000 and then in multiples of ₹1 with no ceiling on the maximum amount. Maximum tenor will no longer than 2 to 3 years from the date of transfer of the original asset. The minimum term for the term option would be 7 days and for the income option 6 months. After the tenor, FD is automatically closed.
In case of premature withdrawal, 1 percent penalty interest will be charged. There is no loan facility available for this deposit. The term deposits cannot be accepted as margin money for non-fund based facilities nor as collateral for any form of fund based facilities.
Published on November 20, 2025
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